Evelyn Partners said that 23pc of business owners had brought forward their exit plans in the year before the election. However, the figure has risen to 29pc ahead of the fiscal event – meaning almost one in three are planning to sell up.
Fears of higher capital gains and cuts to inheritance tax reliefs that would make passing down a business more expensive were commonly cited reasons for the change.
Others also blamed higher borrowing costs and the need to access the capital to overcome personal financial difficulties.
The company polled 500 business leaders who own companies with a turnover of more than £5m between Sep 18 and Oct 2.
Laura Hayward, a tax partner at Evelyn Partners, said: “We have been contacted by an increasing number of business owners worried about what the Chancellor will do to capital gains taxes and inheritance tax.”
She added: “The Prime Minister’s statement that the upcoming Budget would be ‘painful’ has put owner-managed businesses on edge and this has prompted many to want to exit as quickly as possible.”
The rush to sell comes after Ms Reeves and Sir Keir Starmer came under fire for being too gloomy ahead of the Budget.
The Chancellor has warned since July that difficult decisions will be necessary to plug a £22bn “black hole” in the public finances.
The Institute for Fiscal Studies on Wednesday said the Government would need to raise £25bn in taxes to avoid a return to austerity.
The Prime Minister has said that the wealthiest Britons will have to bear the brunt of any tax rises, warning that the broadest shoulders must carry the biggest burden.
Ms Hayward said: “The business environment for many owners has already been tough enough in recent years as they have worked hard to rebuild their businesses after the pandemic, against a backdrop of cost of living pressures and high inflation.
“Add to that the potential for unfavourable tax changes in the upcoming Budget and it’s completely understandable that some are hoping to realise the gains of their successes sooner rather than later.”
Family succession is the most popular option for business owners looking to retire, according to the wealth manager.
However, there are concerns that Ms Reeves may target some reliefs, including for businesses, in the quest for additional revenue.
Ms Hayward said: “Speculation is rife that the Chancellor will curtail business relief, which can help to soften burdensome [inheritance tax] liabilities, and we have had conversations with many business owners who want to fast-track succession plans while this valuable relief is still available.”
